Summary
      of Guaranty Contract of Maximum Amount Entered into by and between Mr. Li
      Xiangqian and Shenzhen Branch, China CITIC Bank Co., Ltd on May
      9th,
      2008

    


    Main
      contents

    Ø Guaranty
      Contract number: (2008)Shen Yin Sun EBaoZi 001;

    Ø Main
      Contract number: (2008)Shen Yin Sun ZongZi 003;

    Ø As
      guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities
      for BAK International Limited’s indebtedness towards China CITIC Bank under the
      Guaranty Contract of Maximum Amount (reference no.: (2008)shenyinsun ebaozi
      001)
      from May 9th,
      2008 to
      Nov. 9th,
      2008,
      and the maximum amount secured is RMB150 million.

    Ø Guaranty
      Responsibility:
      The
      guaranty under this Contract shall be guaranty with joint and several liability.
      The guarantor is obligated to pay off the debt in the event the obligor is
      unable to pay off the debt (including the creditor declares the debt becomes
      mature in advance to its original expiry date due to default of the obligor
      or
      the guarantor).

    Ø Scope
      of Guaranty: The
      guaranty shall cover all of the loan principal, interest, penalty interest,
      breach of contract compensation, damages, undertaking fee and all the expenses
      such as litigation cost, lawyer’s fee, notification cost etc. which is incurred
      to the Creditor in realizing its creditor’s right.

    Ø Guaranty
      period:
      The
      guaranty period is from the effective date of this Contract to two years after
      the expiry of the term of the Credit Facility Agreement and relevant agreement
      entered into under the Credit Facility Agreement.

    


    Ø Default
      of contract: 

    Ø Occurrence
      of any of the following situation should constitute default:

    
      	 	
              1)

            	
              Fail
                in fulfilling the undertakings and guaranties as described in Item
                7 of
                this contract; 2) breach of other articles of this contract.
                

            


    

    
      	 	
              2)

            	
              In
                the event of defaults by the guarantor, the creditor is entitled
                to take
                one or more of the following actions and the guarantor irrevocably
                grants
                the Creditor to take the following sixth actions without passing
                legal
                procedures:

            


    

    
      	
            	a)	
              requires
                the guarantor to correct the default in certain period;
                

            


    

    
      
        	
              	b)	
                declare
                  the agreement becomes mature in advance to its original expiry
                  date, and
                  require the guarantor to undertake joint and severe responsibility;
                  

              


      

      
        	
              	c)	
                require
                  the guarantor to pay additional 10% of the debt as penalty;
                  

              


      

      
        	
              	d)	
                requires
                  the guarantor to compensate the material loss which can’t be remedied by
                  the penalty; 

              


      

      
        	
              	e)	
                cancel
                  the conduct that damages the interests of the
                  Creditor;

              


      

      
        	
              	f)	
                withdraw
                  from any account of the guarantor to pay off the
                  debt;

              


      

      
        	
              	g)	
                take
                  legal action against the guarantors’
breach.

              


      

    

    
       

    

    Headlines
      of the articles
      omitted:

    
      	
            	Ø	
              Termination
                and explanation

            


    

    
      	
            	Ø	
              Payment
                on demand

            


    

    
      	
            	Ø	
              Declaration
                and guaranty

            


    

    
      	
            	Ø	
              Independent
                guaranty 

            


    

    
      	
            	Ø	
              Fulfillment
                of the responsibility and giving up of the
                right

            


    

    
      	
            	Ø	
              Attention
                and notification

            


    

    
      	
            	Ø	
              Dispute
                settlement 

            


    

    
      	
            	Ø	
              Contract
                period

            


    

    
      	
            	Ø	
              Text
                copies

            


    

    
      	
            	Ø	
              Supplement
                articles